Executive employment briefing · 12 February 2026

Garden leave: the quiet clause with active consequences

What senior employees should check in German garden-leave wording before signing.

Empty modern office prepared for a transition

Garden leave can sound like paid time away from work. In an executive agreement it is better understood as a bundle of consequences triggered during notice.

Revocable or irrevocable?

The distinction may affect whether the employee must remain ready to return and how holiday is credited. Drafts sometimes give the employer several options without stating which will apply.

What continues during release?

Fixed salary may continue while bonus opportunity, benefits or equity treatment follow separate rules. Cross-references should be traced to the actual plan documents.

Can other earnings be offset?

Wording may address income from another role, while the duty of loyalty and contractual consent requirements may limit when that role can begin. The post-contractual non-compete starts on a different legal timetable.

Is holiday clearly accounted for?

A release clause may try to consume outstanding leave. The wording and circumstances determine whether that result follows. This deserves a direct check when an exit date is negotiated.